Reeves announces '$1 billion-plus' state infrastructure plan

Mississippi Department of Transportation Commissioner Dick Hall questions whether the Legislature believes he and his fellow commissioners are lying about the need for more infrastructure funding or if lawmakers "just don't care" about the number of crumbling roads and bridges in the state. Hall, who represents the state's central district, spoke to the Stennis Capitol Press Forum on Monday, Oct. 9, 2017.
Sam R. Hall

Lt. Gov. Tate Reeves on Monday unveiled a more than $1 billion, six-year plan to divert more state money and borrowing to roads, bridges and other infrastructure.

"This is a comprehensive plan that addresses the needs across our state without raising anybody's taxes," Reeves said.

Reeves' plan over six years includes:

Diverting more than $600 million from the state general fund.

Diverting about $125 million in state sales taxes to cities earmarked for infrastructure.

Borrowing $150 million.

Taking about $15 million a year from automobile tag collections.

Forcing the Mississippi Department of Transportation to cough up $125 million over five years from its roughly $1 billion state budget for the program.

Electric, hybrid owners would pay 'assessment'

The general fund spending would come primarily from the state's annual "2 percent set aside" cash reserves. The plan would spend half of the reserves this year, then the full 2 percent each year for the following five years. Proponents said the state's rainy day fund is fairly flush with about $350 million, so not holding back 2 percent of revenue shouldn't hurt the state's credit rating.

But some lawmakers on Monday questioned what would happen to the plan if, as in past years, revenue fell short of projections and there was no 2 percent cushion or worse, a large shortfall. They also questioned whether cutting MDOT to fund the new transportation plan was a shell game.

"This seems more like a press release than an infrastructure plan," said Sen. David Blount, D-Jackson.

The Senate Finance Committee on Monday afternoon passed the new proposal on to the full Senate after a few hours of questions and debate. The bill faces a Wednesday deadline for passage by the full Senate to the House.

Sen. Hob Bryan, D-Amory, made an unsuccessful motion to table it, saying lawmakers should have more time to review and offer changes.

"This is a 300-page bill that we were made aware of just a few hours ago," Bryan said.

While the plan doesn't include a tax increase, it does create an "annual assessment" for owners of electric and hybrid vehicles. Those owning electric cars would pay $175 a year and those with hybrids $75 a year. The reasoning is they aren't paying as much of the state's 18.4-cents-a-gallon fuel tax that funds most roadwork.

Reeves said the plan would provide $240 million in its first year for badly needed county bridge work and other immediate needs. It would provide $600 million for long-term work on roads, bridges, railways and water and sewerage. It would increase funding to cities by $125 million over five years and another $200 million for "emergency bridge repair and moving products to market."

For some of the state spending, including the sales tax diversion to cities, local governments would have to match the funds, or "have skin in the game," Reeves said.

Senate Bill 3046 was co-authored by Senate Finance Chairman Joey Fillingane, R-Sumrall, and Transportation Chairman Willie Simmons, D-Cleveland. They flanked Reeves as he unveiled the proposal outside the Associated General Contractors building on Lakeland Drive at a news conference Monday, with equipment and repair work to a bridge over the Pearl River as a backdrop.

A shot at MDOT?

Besides forcing MDOT to either cut its own budget by $125 million over five years or have the Legislature do it, the measure puts the governor, Mississippi Development Authority and local governments in charge of most of the spending and projects.

The bill also prevents MDOT from buying rights of way for projects unless its approved by the governor and the project is scheduled to be completed within five years. It also demands MDOT spend at least 95 percent of its state funds maintaining state roads and bridges.

MDOT officials did not respond to requests for comments Monday.

Fillingane on Monday said: "We believe (MDOT) can easily find that savings by right-sizing their staff and finding other efficiencies."

Reeves over the last couple of years has helped kill numerous House proposals for increased road funding and helped prevent proposals in his own chamber from Simmons and others — such as raising fuel taxes — from getting much traction. Most of the House proposals were piecemeal and would generate relatively small amounts of revenue short term. Reeves said the new Senate plan is comprehensive, "real money," and includes many of the ideas brought forth by the House or individual bills in the Senate.

House leaders had not had time to look at the plan in detail Monday afternoon, said Meg Annison, spokeswoman for Speaker Philip Gunn.

“The House led with transportation legislation early in the Session,” Annison said in a statement. “Infrastructure has been a priority of ours, so we will be interested in looking at the Lieutenant Governor’s proposal.”

Gov. Phil Bryant last week had recommended state leaders hold off on legislative plans to see how President Trump's infrastructure proposal shakes out in Congress. On Monday, Bryant issued a noncommittal statement about the new state proposal.

"I remain in contact with the White House and the congressional delegation," Bryant said. "Any state proposal will be part of those discussions as it relates to blending our resources so Mississippi can take full advantage of a federal plan once one is finalized ... I appreciate the speaker and lieutenant governor's continued work on this issue."

Reeves said his plan will give the state the money and flexibility to take advantage of any federal infrastructure programs Congress passes.

Simmons on Monday praised the new Senate plan.

"For the past six years, I've been beating this horse, and some said we were kicking the can down the road," Simmons said. "But we've had (Reeves') ear. He's said all along we've got to deal with our infrastructure needs."

Mississippi business and transportation leaders have pushed for several years for more infrastructure funding and warned that Mississippi's roadways are deteriorating.

The Mississippi Economic Council, the state's chamber of commerce, has pushed lawmakers to come up with more funding for road and bridge work. MEC President Scott Waller on Monday said he still had to suss details of the new plan.

"But my first general thoughts are that making a $1 billion commitment over the next five years is a step in the right direction on having a real impact on transportation," Waller said. "It's something meaningful."